Environmental Management

Basic approach

Global issues such as global warming and climate change are intensifying, seriously impacting people’s lives. With “Work for people” as one of our core values, the Fuji Oil Group hopes to contribute through our business to a sustainable society as advocated by the UN SDGs. Extreme weather events and biodiversity loss caused by accelerating climate change also threaten the supply of the agricultural products we use to make our products. Environmental stewardship is therefore essential for the sustainability of our business as well.
In October 2015, the Fuji Oil Group established the Basic Policy of Environmental Integrity, which comprises the four items listed below. We have accelerated this work by announcing Environmental Vision 2030, in which we commit to reducing CO₂ emissions, water use, and waste across the Group with a target year of 2030. Our reduction targets for CO₂ emissions have been approved by Science Based Targets initiative (SBTi).^*1 We also recognize the importance of disclosing the climate impacts of our business to stakeholders properly. In May 2019, we announced our support for the Task Force on Climate-related Financial Disclosures (TCFD)^*2 and have disclosed information voluntarily in four areas: governance, strategy, risk management, and metrics and targets.

• *1 Organizations set science-based targets to reduce their greenhouse gas emissions over a five to 15-year horizon. Targets are considered “science-based” if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement.

• *2 Follow the link below for disclosed information in line with the TCFD recommendations.

  https://www.fujioilholdings.com/en/sustainability/governance/risk/

• Fuji Oil Group Basic Policy of Safety, Quality and Environment (PDF, 331KB)

Management system

In 2015, Fuji Oil Holdings Inc. established the ESG Committee^*1 as an advisory body to the board of directors. The ESG Committee monitors the progress and results of ESG initiatives and regularly reports insights to the board of directors for review. This ensures continual improvement of our ESG management.
The Fuji Oil Group also has processes for identifying our material ESG issues.^*2 We designate Chief Officers^*2 to take responsibility for managing specific issues in line with their functions.

• *1 Follow the link below to learn more about the ESG Committee.

  https://www.fujioilholdings.com/en/sustainability/approach/

• *2 Follow the link below to learn more about material ESG issues and a list of Chief Officers by material issue.

  https://www.fujioilholdings.com/en/sustainability/materiality/

Goals / Results

Environmental Vision 2030

• *1 Base year: 2016
• *2 Scope 1: Direct emissions of greenhouse gases from our own operations
• *3 Scope 2: Indirect emissions from the use of electricity, heat and steam supplied by third parties
• *4 Scope 3: Emissions from the activities of non-Group companies in our value chain (Categories 1-15)
• *5 Category 1: Raw materials
• *6 Excluding Industrial Food Services (Australia)
• *7 Water use per unit of production
• *8 Amount of waste per unit of production
• *9 Excluding waste volume generated at Industrial Food Services (Australia)

Analysis

A detailed review of initiatives in FY2020 and changes from the previous year are provided below.

CO₂ emissions (Scope 1 & 2)

Scope 1 and 2 emissions in FY2020 were 19% lower than baseline, an additional reduction of five percent from the previous year’s 14% reduction. In addition to a drop in production due to the COVID-19 pandemic, contributing factors included the following: Fuji Oil Co., Ltd. in Japan began operating a new cogeneration system and reusing waste heat from the cooling processes for oils and fats production at the Hannan Business Operations Complex. Additionally a solar photovoltaic generation system was installed at the Chiba Plant. Woodlands Sunny Foods Pte. Ltd. in Singapore installed a solar power generation system. Multiple Group companies outside Japan switched to LED lighting, among other initiatives.

CO₂ emissions (Scope 3)

We added this target in FY2020 and worked to further improve the accuracy of aggregated data. Scope 3 emissions in FY2020 were 6% higher than baseline as a result of Blommer Chocolate Company (U.S.) joining the Group after the base year.
Going forward, we will strengthen the engagement with suppliers to achieve a reduction.

Water use (intensity)

Water use in FY2020 was 22% lower than baseline, an increase of two points from the previous year’s 24% reduction. Despite a drop in production due to the COVID-19 pandemic, factors contributing to the increase included longer cleaning times on production lines as a COVID-19 sanitation measure. However, Group companies took steps to reduce water use, including strengthening their management systems and addressing points of low water efficiency. They also reused clean-in-place (CIP) rinse water and steam condensate to reduce water use.

Waste (intensity)

Waste generation (intensity) in FY2020 was 1% higher than baseline, a reduction of two points from the 3% increase in the previous year. In addition to a drop in production due to the COVID-19 pandemic, factors contributing to the reduction included reduced product waste and reduced waste generation from raw material packaging in and outside Japan. Group companies took steps to reduce waste: In Japan, Group companies continued to reduce production losses; in the U.S., Fuji Vegetable Oil recycled pallets; and in China, Blommer Chocolate Manufacturing (Shanghai) Company Ltd. reduced the disposal of expired products by shifting from make-to-stock production to make-to-order production.

Resource recycling

The resource recycling rate in FY2020 was 99.37%, slightly higher than 99.33% in the previous year. A drop in production due to the COVID-19 pandemic led to a decrease in waste generated in Japan. Group companies took steps to increase their resource recycling rates. In the U.S., for example, Blommer Chocolate Company carried out an initiative to reuse cocoa shells. The Hannan Business Operations Complex in Japan increased its recycling rate by sorting waste more thoroughly. Other Group companies found ways to convert metal scraps or waste clay into salable material.

Environmental audits

Fuji Oil Co., Ltd. undergoes both external and internal audits of its environmental management. External audits are conducted annually in accordance with ISO 14001 (surveillance audit for years one and two and a recertification audit for year three). Internal audits are conducted annually and include safety, quality, and environmental checks at ISO 14001-certified operating sites to improve production management at Group companies. The FY2019 external audit^* and the FY2020 internal audit each found one environmental nonconformity. The causes of nonconformity were investigated and properly addressed. The corrective actions have been completed.
Our internal audits do not simply check for compliance or conformity with all relevant environmental laws, regulations and internal rules. They also serve as opportunities for auditors to explain important environmental matters. Through environmental audits, we examine and evaluate each Group company’s environmental efforts and give advice on areas needing improvement, thereby promoting and improving the Group’s environmental conservation activities.
Outside Japan, the Production Productivity Management Group and Sustainability Development Group conduct safety, quality, and environmental audits to examine and evaluate each Group company’s environmental efforts and give advice on areas needing improvement. This helps to raise management standards for the entire Group. In FY2020, three production sites outside Japan were audited.

• * The FY2020 external audit was postponed until FY2021 due to COVID-19.

Acquisition of management certifications

The Fuji Oil Group promotes the acquisition of ISO 14001^* certification, an international standard for environmental management systems, in order to advance legal compliance and environmental conservation activities.
In Japan, two out of five Group companies with production sites have obtained ISO 14001 certification (a 50% certification rate). These two companies are Fuji Oil Co., Ltd. and Omu Milk Products Co., Ltd., which together account for about 99% of the Group’s total production volume in Japan.
Outside Japan, seven out of 17 Group companies with production sites are certified (a 41% certification rate). These seven companies account for about 48% of the Group’s total production volume outside Japan.
One production site in China is certified to ISO 50001^*, an international standard for improving energy use through the development of an energy management system (EnMS).

• * Follow the link below to learn more about Group companies’ latest certification statuses.

  https://www.fujioilholdings.com/en/sustainability/authen/iso14001/

Training

The Environmental Management Team of the Sustainability Development Group at Fuji Oil Holdings Inc., together with the company’s Production Productivity Management Group, a strategy development unit with specialized knowledge in the fields of quality and safety, periodically visit Fuji Oil Group companies outside Japan to provide training and raise awareness on safety, quality, and the environment among management and staff in relevant departments. In FY2020, the team provided training at three production sites outside Japan. The team also held briefings and discussions on Environmental Vision 2030 and other topics via video conferencing.

Compliance with environmental laws and regulations

In FY2020, there were no serious violations of environmental laws and regulations in the Fuji Oil Group.

External recognition

• * Follow the link below to learn more about our external recognition.

  https://www.fujioilholdings.com/en/sustainability/evaluation/